I have a few questions regarding myself being a sole trader...
In 2009 I was made redundant from company X. Later that year I did some on off work for them as a Sole Trader. Fixed fee, and literally a day here, few hours there for 4-5 months before the work started picking up. I largely worked from home and provided my own computer. My role had changed from the service I used to provide as a PAYE.During that year I also completed 2 jobs for other clients.
Since 2010-to present date I have been working for this client regularly however providing the new service mentioned above. I provide my own resources, work from home when I must, hire a few helpers when needed (explained below) I also use a workstation of theirs when convenient. During this period I have also worked for 4-5 other clients. I also have my own website etc. Are there any issues with this arrangement?
On occasion I hire 2 other people to help me out with comnpany X and other clients. This might be 2-4 days work in one go. It's not regular. Maybe 2-3 days every 2-3 months. Would HRMC view them as employee's and therefore I should pay their NI etc? One of them is a full time sole trader whilst the other is Employed and does extra work outside his contract.
One of the above people that I have hired has also provided me with some work, is this an issue?
Also, I have just realized I made a mistake on an old tax return. I put a computer and 2-3 other smaller items as an expense instead of a Capital Expense, which now I know about. What should I do about this?
I am a 3D artist, so similar to a graphic designer.
It was the tax year 2010-2011
Thank you for your advice. Should HRMC decide to investigate my tax return what would the likely outcome be? I guess a penalty for getting it wrong, and any small tax difference given that had I used AIA in the first place the same/similar tax deduction would have taken place?
With regards XXXXX XXXXX workstation I use company X's regularly but along with my own in equal measure. I also subscribe to a couple of online resources for stock imagery I need to use.
I was more worried given the duration I have been working with them which is almost on a 9-5 basis since 2010 with other clients work in and around it.
Yes the other two guys I work with do pay their own taxes etc. We all quote and invoice each other as and when etc.
One last question for you, with regards XXXXX XXXXX train expenses 24 month rule....
As mentioned I worked sporadically for company X in 2009-2010. Which meant I had to get a train to their office, mainly to pick up a brief or work at their office for a few hours.
However tax years 2010-2011, 2011-2012 I trained regularly into their office (24 months)
So I shouldn't claim any train expenses for 2012-2013 for that client?
Thanks for the great help.
So just to confirm the 24 month rule only applies if I was to work there temporarily? There have been breaks in between where by I may work at home for 1 week then travel in the next etc.
In which case I will not claim any further travel expenses to this client.